SEBI in its July bulletin on the capital market review said public and private equity issuance declined but debt investment by private placement continued its upward pace. The market regulator said the total equity issuance dipped by 63.8 per cent to Rs 16,038 crore from Rs 44,329 crore in May 2019, mainly on account of slowdown in the public and rights issues.
The corporate sector raised Rs 569 crore through public issuance of equity -- including initial public offering (IPO), follow-on public offer (FPO) and rights issue -- compared to Rs 25,527 crore raised in May. The industry raised Rs 15,469 crore through preferential allotment and qualified institutional placement (QIP), recording a 22.1 per cent fall from Rs 19,851 crore in May.
The total debt issuance rose by 11.9 per cent in June. Of this, the private debt issuance increased to Rs 49,072 crore from Rs 43,577 crore in May, while the public debt instruments fell to Rs 852 crore from Rs 1,048 crore in May. The private placement of equity and debt constituted 96.5 per cent and 98.3 per cent respectively of total resource mobilised by listed companies though equity and debt instruments, respectively.
SEBI said the equity markets remained range-bound in June, as the market awaited announcements in the first Budget of the Modi government, which was scheduled on July 5. Rupee gained by 1 per cent and closed at Rs 69 per USD whereas the yield on 10-year government bond fell by 15 basis points to 6.88 per cent in June, as RBI reduced its key policy rates in its last MPC meet.
Edited by Manoj Sharma